The Introduction of Lean Manufacturing Concepts at Qualcomm.ppt

8/10/2019 The Introduction of Lean Manufacturing Concepts at Qualcomm.ppt

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Introduction: Agenda

The Value Chain

Lean Concepts

Benefits of Lean Manufacturing

2 Oracle Instances

The QCT instance

The Quantum instance

Why 2 instances?

Separation of Production and Non-Prod Procurement

2007 Implementation Sites


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2

The Value Chain

Value Chain Processes

MarketProducts /Services

SellProducts /Services

Plan /Manufacture

Distribution /Service

& Support

ProcureMaterials /Services

Generate Demand Fulf i l l Demand

Develop-IntroduceProducts /Services

The Quantum value chain is driven by Qualcomms leadershipposition as the developer of CDMA technologies. QCT CDMA

technologies accounts for 90-95% of QSCO demand, principally

FFAs and SURFS (test equipment used to test chip quality and

functionality). The remaining 5-10% of QSCO demand is

generated by QWBS (Qualcomm Wireless Business Solutions),which manufactures OmniVision and other wireless products.


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3

Lean Concepts: The 5S System

Japanese Meaning Translation

Seiri Organization Sort

Seiton Orderliness Set-in-Order

Seiso Cleanliness Shine

Seiketsu Standardized Cleanup Standardize

Shitsuke Discipline Sustain


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4

Lean Concepts

T O :

Inconsistent InventoryKanbans, Min/Max and Safety

Stock Demand Triggers

Disconnected Forecasts Intelligent Forecasts

Inconsistent Signal to Partner Defined Signal to CM Partner

Complex Processes Radical Simplification

F R O M :

Predominately Push Pullfrom the Partner


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5

Benefits of Lean Manufacturing

Reduced inventory across the supply chain

Greater predictability around lead times and on-time shipments

Increased reliability the right product at the right time at the right price

Better customer satisfaction due to greater accuracy in forecast delivery

Better data, robust processes and systems management effectiveness

Increase control over quality, defects and root cause of defects (6Sigma)

Optimize operations between existing QSCO and shelter organization

Better manage throughput with new Contract Manufacturing partner

Position Qualcomm for rapid growth in emerging business and markets


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2 Oracle instances: The QCT Instance

Qualcomm

SAT OrganizationsFAB Suppliers

PO forDIE items

Service PO forFG items

3B2_C-Imessage

fromFAB

3B2_C-Omessageto

SAT

4B2messagefrom

SAT

QCT instance has two application servers: 11.5.8 and 11.5.9 (lot controlled)

Quantum instance is an Oracle 11.5.10 instance, with min. customizations

Each organization owns its own inventory; common inventory items

QSCO (manufacturing) has no P&L, and will liquidate costs to other BUs

QCT Instance


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2 Oracle instances: The Quantum Instance


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Why two instances?

The QCT instance is geared to Qualcomms chip manufacturingbusiness, is heavily customized, and uses lot control and other

features that are not attractive to the Qualcomm discrete

manufacturing businesses

The QCT instance uses two application servers, one Oracle 11.5.8and the other, an Oracle 11.5.9 instance, primarily to support Oracles

Advanced Supply Chain Planning (ASCP) engine

The QCT instance does not include project accounting, nor does it

make allowance for international rollout

There is continuing discussion in the press about spinning off the

chip business


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Separation of Prod & Non-Prod Procurement

QSCO

(ProductionProcurement)

CORP (Non-

Production

Procurement)

MRP/ASCP

Completely automated

Procurement Process

Qualcomm USD Set of Books

iProcurement

Oracle Contracts

Oracle Services

Procurement

Directand

NPI

Shelterand

Bldg M

Indirectand

Services

CorpProcure


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SD1

SD2

Quantum Implementation Sites

Actual sites, 2007 rollout

QMT Taiwan

San Diego

Tijuana, MexicoQMT San Jose

India(3)

China(3)Japan(2)

Korea(2)

UK(5)

EU (DE, ES, FR,IT, NE, SE) (6)

Mexico(6)

Israel(1)

Australia (2)

Argentina (1)

Brazil (1)

Canada (1)

Potential sites, 2008 + global rollout

Indonesia (1)

Russia (2)

Singapore (1)

South Africa (1)

Taiwan (3)

Vietnam(1)


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Lean Manufacturing: Agenda

Inventory Orgs Structure

ASCP Overview

Forecasts and Sales Order Drive Demand

Business Processes

SCO (Supply Chain Organization) Procurement

Shelter Manufacturing and CM Procurement

NPI Procurement

Quality and RTS Highlights

The concept of a Virtual MRB

Lean Manufacturing to be Model

Conclusion


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ASCP Overview

Generate Baseline Forecast

Oracle Modules:

ODP ASCPCollaborative

PlanningiSupplier

Portal

Order

Management

In addition, DBI may be used for KPI / Metric reporting

Collaborative Demand

Planning

Generate Consensus

Forecast

Capture Inventory

Visibility

Collaborate with

Contract Manufacturer

Generate Constrained

Long Term Supply Plan

Generate Short Term

Manufacturing Plan

Release Work Orders

to Contract Manufacturer

Release Purchase Orders

to Component Vendor(s)

Check Availability

& Capacity (ATP)

Demand driven by forecasts and Sales Orders (depending on OU)As Demand drops into the Planners Workbench, Planners route make

orders to MES (Shop Floor Control), material requirements are

identified, and POs are created and transmitted to Suppliers via EDI

(Harbinger)

Entire production procurement process is automated, end-to-end
http://www.oracle.com/index.html


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Forecasts Drive Demand into QSCO

QC US BUSINESS GROUP

QC US SET OF BOOKS

QSCO OU

MFG SAN DIEGO SDI001

Business Group

Set of Books

Legal Entity

001-049

ITEM MASTER000

QC LEGAL ENTITY

MFG END TO END PROCESSQCT

MFG MEXICO002

QCT006

Supplier

Customer

Production material received from supplier

Production POs

Sales OrderShipments

Manual MOs

Demand

Manual MOs

Demand

Manual MOs

Demand

Supply

ProductionPOs

QCT OU

QCT225

225-249

Subassembly

Supply

SubassyDem

Forecast/SO Demand

Projects

Issue to Projects

Foreca

st

Forecasts or SOs created in QCT, MUI, QMT OU

Demand is placed against QSCO OU, 3 inventory orgs

POs are generated and sent via EDI to suppliers


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Sales Orders

Drive Demand

Run ASCP

Engine

SIM versus

REGEN Run

POs using EDI

850Forecast using

EDI 830


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ICG Process:

Item is

Planning

Enabled

POs marked

with an -NPI


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Oracle Configuration: Item Master (1 of 2)

Defines period

for which

releases created

Create Supplyto Match

Demand

Indicates an

Active Item


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Oracle Configuration: ASCP Engine (2 of 2)

ASCP Plan is

not Constrained

Enforced

Demand Drivesthe Planning

Engine


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Quality and RTS Design Highlights

Uses standard Oracle hooks from Procurement to Quality

8 Quality Collection Plans developed for each state an NCed item may

take

HandlesRTS for both Production and Ancillary Items

Coversall RTS scenarios:Credit

Outside Rework

SOI (Supplier Owned Inventory)

Legacy Receipts

Utilizes standardQuantum shipping process (custom, integration with RTS)

Leverages standardOracle WO/PO process to capture all relevant inventory

consumption, item conversions, labor charges and other variances

ImprovesA/P debit memo process using the AP Open Invoices API for

automatic debit memo creation


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Automated

QUALCOMM Virtual MRB Process

RepairVendor

Disposition

Sub (SQE)

Scrap

Factory

Part is not salvageable

and is scrapped.

NC part is sent to

outsourced repair

facility

Supplier

MRB

Sub

RTS/RTV

( Credit/ SOI)

Factory receives part, and after inspection (reject),

transfers NC part to MRB Inventory.

Scrap

OSP

Material Receipt into MRB Inventory

RTS Process: Create

OM Shipping Lines from

Receipt Lines.

Accept,

Use as IsAccept

Use as Is

NC part is retuned to

MRB Sub-inventory

Rework: Manually

Create Work

Order for internal

rework itemsNC

Process

Start

RTS

(Buyer)

Hold

Manual

Work Order

NC Rework

Inv Move

Key

Collection Plans

Master Main

Detail

Audit

Disp Master

RoHS-WEES

WFR Master

RTS Master

OSP Master

RCV INSP


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Quality Automated Processes (incl. RTS)

AutomaticCreation of Sales OrdersTrigger on RTS disposition

Utilize Item set up

Feed Shipping documents

Create Vendor address (site)

Automatic E-mail Notification to next Person in Chain

Reports


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ERP

Order

Mgmt

LEAN Process Flow To Be Model

Resp

MPS Planning

ContractManufacturer

ERP

Customer

HealthMonitoring

Eng ChangeMgmt

Qualcomm

SupplyChain

Partner

MRP Planning

Bad Board/Virtual MRB

Process

Pack-out

ROP Sizing

Costing

Transit

SLC

CMPack-out

Kanban/ROP

ComponentMgmt

Kanban/ROP

Kanban/ROP

CM Dist Site#`1

Transfer FGI toCompany

CM Dist Site#2

Kanban/ROP

CdeC Site

On line Orders


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Conclusion

Documents

The Introduction of Lean Manufacturing Concepts at Qualcomm.ppt